Invest in stocks at the right time
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The question that comes up all the time in stock trading is - What is the right time to buy or sell stocks? There is no definite time to invest, though following a few rules can help to minimise the risks and get good returns.
To get the best out of your stock market investments, you can learn about the factors that affect the market:
Best time of the day
Intraday traders buy and sell stocks within the trading hours. Observing charts and graphs throughout the day can cause mental fatigue. But the trader need not do this because:
The stock market opens at 9.15 AM and for the first 15 minutes, the market responds to the previous day’s news. This time period should be avoided. The volatility of the stock market drops after the first 90 minutes, and the volume in which the stocks are traded also drops. So the best time to trade is from 9.30 AM to 10.30 AM. but if you need more time then it can be extended up to 11 AM.
Best day of the week
Many people will tell you that Monday is the best day to buy stocks and Friday is the best day to sell stocks. The logic behind this is that the stock prices are the lowest on Mondays and the highest on Fridays. You buy shares when the prices are low and sell shares when the prices are high.
If everyone played the same game, then there would be no sellers on Monday and no buyers on Friday. This can mess up the demand and supply. There is no such thing as the best day of the week.
Favourable day
The best time to buy socks is when their prices fall low. Buying at a lower price is considered safer than buying at a high price because it is unlikely that the prices of the stocks will go even higher.
When you buy shares at a lower price, there is a chance that they may turn around and rise so that you can make a profit by selling them. The best time to buy is when the Open Interest (OI) is low. This indicates that the people want to sell and this ensures lower buy rates.
There are other factors that can affect the price of stocks like dividends, payout and any good news. There are online trading app provided by brokers to help you trade easily.